Bureau of Local Government Finance Opinion

March 21, 1995 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 3rd Indorsement Respectfully returned to the Regional Director for Local Government Finance, Region 1, 2nd Floor, Mabanag Justice Hall Building, Governor Luna Street, San Fernando, La Union, the herein preceding indorsement. This refers to the query of the Provincial Treasurer of Pangasinan as to whether or not the delivery trucks/vans of Cosmic Lumber Corporation (CLC) with offices in Dagupan City and Mangaldan, said province, are subject to the annual fixed tax provided for under Section 141 of the Local Government Code of 1991 (LGC), as implemented by Article 230 of the Implementing Rules and Regulations (IRR) of the Code. Representations are made that said trucks are being utilized in the delivery of goods purchased by customers at the construction site and to pick up stocks of various materials. It is the view of that Office that the said delivery trucks/vans are subject to said annual fixed tax as provided under Article E of Tax Ordinance No. 2, s. 1992 of the said province, implementing Sec. 141 of the Code, quoted hereunder: "Sec. 141. Annual Fixed Tax for Every Delivery Truck or Van of Manufacturers or Producers, wholesalers of, Dealers or Retailers In, Certain Products . (a) The province may levy an annual fixed tax for every truck, van or any vehicle used by manufacturers, producers, wholesalers, dealers or retailers in the delivery or distribution of distilled spirits, fermented liquors, soft drinks, cigars and cigarettes, and other products as may be determined by the sangguniang panlalawigan, to sales outlets, or consumers, whether directly or indirectly, within the province in an amount not exceeding P500.00. "xxx xxx xxx" On the basis of the aforequoted provisions of law, the delivery trucks, vans or any vehicle used by the manufacturers, producers, wholesalers, dealers or retailers referred to therein shall be subject to the annual fixed tax imposed by the province when they deliver their products within any municipality of the province of Pangasinan. For purposes of further clarification, however, it must be stated that the cities of Dagupan and San Carlos may likewise impose said annual fixed tax on delivery vans pursuant to Section 151 of the Code. Accordingly, such vehicles making deliveries exclusively within the territorial limits of the cities of Dagupan and San Carlos shall be subject only to the annual fixed tax imposed by said cities under their respective tax ordinances, and not to the same tax levied by the province. However, any such delivery truck, van or vehicle making deliveries to either or both cities and to any municipality of the province, as well, shall be liable to pay the said annual fixed tax to both the province and the city concerned. Be guided accordingly. By authority of the Secretary: (SGD.) LORINDA M. CARLOS Executive Director Bureau of Local Government Finance